VAT And Excise Tax

VAT

The "tax on products and services" (the Polish name for VAT) was introduced in Poland with effect from 5 July 1993, replacing Turnover Tax. VAT is charged on sales and supplies of goods and services by registered businesses in Poland, and on the import and export of goods and services into Poland.

VAT was designed as a tax on consumer expenditure, rather than being a tax to be borne by businesses. Businesses are entitled to deduct the VAT they have suffered on inputs ('input tax') from the VAT which they have charged their customers ('output tax'). The net amount of VAT is paid by the seller of the goods or services to the taxation office. Should the input tax exceed the output tax, the business is entitled to carry forward the excess for set off against its VAT liability in succeeding periods. In certain circumstances the excess is refunded to the business by the taxation office.